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Quickbooks & MYOB – Personal Expenses and Loan Accounts – What if Negative?
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Published on Tuesday, 05 March 2013 21:17
On starting a new client, bookkeepers emailed question - There is quite a few personal expenses being spent out of the business account (i.e. taking wife out to dinner and cash out at atms, etc), I am using liability account 'FRED-Loan', at the moment it is -$7,000ish, however he initially invested $15,000 into the business and I feel this should be offset to that liability acc... ? I'm not sure how the tax agent entered the opening account balances with the $15,000... should I leave it as a negative running balance... ??
Yes leave the account whether negative (credit) or positive (debit) – there will be other adjustments at end of tax year, so let the tax agent finalise those and where the loan account ends up. Usually the $15,000 goes in the loan account also, but in case there is a reason, leave it separate until year end and see what the tax agent gives as the Trial Balance – then we can align the accounts to match theirs.
